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Waning China Demand Pressures Thermal Coal Prices -Montel

Coal News - Published on Tue, 05 Nov 2019

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Montel reported that waning Chinese demand and ongoing softness in Europe have outweighed burgeoning Indian imports to maintain pressure on Asian coal prices in the week through. The Pacific basin’s reference price for high grade (6,000 kcal/kg) Australian coal exports to Asia last stood at USD 68.91/t, 32% below where it began 2019. Global Coal’s Newcastle index declined marginally over the past week, though its premium to European coal blew out amid a plunge in import prices for north-western Europe. Newcastle is trading roughly USD 15/t above Global Coal’s European benchmark.

Commerzbank saw little prospect for a recovery in coal prices over the next 15 months. It forecast Europe’s API 2 coal prices to remain around USD 60/t through until at least the end of next year. Bank’s Barbara Lambertz said “A sudden break in import momentum by the end of the year cannot be ruled out, as numerous import ports are likely to have already exhausted their annual import quotas. Port stocks are very high and the domestic spot thermal was down each day in the past month.”

Coal prices on China’s Zhengzhou exchange have pushed out some of their lowest levels this year, falling another 1% over the past week to CNY 547.20/t (USD 77.68/t).

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Posted By : Rabi Wangkhem on Tue, 05 Nov 2019
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